Digital Marketing Strategy Report: OCADO and Digital Marketing

This report analyzes digital marketing strategies with a focus on the online supermarket OCADO. It begins by examining key legal and ethical issues in integrated marketing communication, including privacy, transparency, awareness, and market research. The report then evaluates economic, social, and technical factors influencing the success of digital marketing campaigns, such as pricing strategies, cultural considerations, and technological infrastructure. Furthermore, the report assesses the benefits and shortcomings of social media for start-up businesses, specifically exploring the advantages and limitations of Facebook, YouTube, LinkedIn, and Instagram. Finally, the report evaluates the effectiveness of the social web for brand building, offering a comprehensive overview of the digital marketing landscape and its various components.

Digital Marketing
Strategy

Table of Contents
TASK 1............................................................................................................................................3
Critically analyze and evaluate what you think are the three key legal and/or ethical issues of
Internet usage in Integrated Marketing Communication of modern organization. ...............3
TASK 2............................................................................................................................................5
Identify and critically evaluate some of the key economic, social and technical factors
influencing the success of their digital marketing campaigns................................................5
TASK 3............................................................................................................................................7
Analyze and evaluate the benefits and shortcomings social media can bring to start-up
businesses. What are the advantages and disadvantages for a business partner with social
media such as Facebook, YouTube, LinkedIn and Instagram................................................7
TASK 4 .........................................................................................................................................10
Evaluation as well as effectiveness of Social Web for the purpose of brand building........10
CONCLUSION-............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Digital marketing is the marketing of products or services using digital technologies on the
Internet, including through mobile phones Apps, using display advertising, and any other digital
mediums. OCADO is a British online supermarket that describes itself as 'the world's largest
dedicated online grocery retailer'. In contrast to its main competitors, the company has no
chain of stores and does all home deliveries from its warehouses. This report covers questions
such as ethical code of conduct of the business, issues on economic, social and technological
factors, effectiveness of social web and the advantages and disadvantages of social media.
TASK 1
Critically analyze and evaluate what you think are the three key legal and/or ethical issues of
Internet usage in Integrated Marketing Communication of modern organization.
Privacy, Transparency and Awareness-
The privacy of users is the most important factor in this aspect. OCADO deals online
with their customers so they need to respect the privacy of their customers. It is difficult for the
company to gather information so that they can implement this strategy in a effective manner.
Company must respect the privacy of the client and protect their information which is sensitive.
While gathering the information the audience which is targeted by the company must know
about the aspect. They must know about the details of the information that is asked by the
company and tell them the way to contact them if they have any query or question in mind.
Company needs to provide them with the option of pop up window or a dialogue box so that
customers can engage in a conversation whenever they want. Company can have a leverage
over them by using this as they are providing them the service even if they don't want to read
it. Beyond the stages of research company needs to maintain the aspect of transparency.
Audience are educated and they understand the working pattern if the advertisement so the
company must use strategies so that they can attract them and get their attention easily. For
the companies which serve in digital marketing it is a challenge to make the advertisement in
an effective manner. Many companies use the referencing of self humour so that they can get
better results. One drawback of this is it is not suitable for every product and this results in low
awareness for some products but it is essential for the company to have the same level of reach

and awareness at the time of launching a campaign. At that time company must take suitable
products and decide the best way which will help to capitalize it. (Narasimhan, (2016))
Market Research and finding the audience-
Company must look for strategies at the time of beginning stage. They must never
make false assumptions in the research as it can affect the whole strategy of marketing and it is
not ethical for a company to have this code of conduct in their organization. OCADO must take
the help of digital marketing at the time of beginning and they must use the strategy according
to the audience they have targeted so that they can appeal to them. In order to raise a
campaign a good marketing research is necessary and if the company has put any false
assumptions it will create a problem for that as it can make the campaign and research bias.
Company must divide the people into categories on the basis of age, income, interests, hobbies
education etc. so that they can get the results from the conducted research. If the companies
targets more no of people then risk of biasness will be higher if they don't proceed their
operations in ethical manner. The decisions of the company will be more on assumptions and
stereotypes. If the company does not have a strong ethical code of conduct then the awareness
of culture in the people will not be accurate in the mind of the company and it will wrongly
appeal the impression of the company in the eyes of the customer.
Awareness from Third Parties-
Sometimes companies don't have much resources in the technological aspect so they
have to be aware of the privacy issues. The reason is all the companies such as OCADO sells
their products at a common place and most of them are not aware of the factor of collection of
that data which is sold by the companies and third party sites took it. Companies need to hire a
professional for this job so that he or she can prevent the security of the company from these
third party sites. (Priluck & Topol, (2018))
TASK 2
Identify and critically evaluate some of the key economic, social and technical factors
influencing the success of their digital marketing campaigns.
Economic Factors-

The economic environment which is suitable for the company must be assessed on a
national or demographic level. For instance company can change their target audience by
changing their aesthetics so that they can target younger people. For that they need to set their
pricing strategy according to their level. This can lead the company to shift to a lower pricing
strategy. Digital marketing allows the company to set many new way of prices which was not
possible before and OCADO is taking the benefit of that.
For instance- with the help of cookies company can set different prices for first visitor and
return visitor. Sometimes the company also implements auction pricing which are used by
giants like E bay and Priceline. They can provide their regular customers a premium package by
charging a substantial amount of money and reduce the prices of products who have
subscribed for this service. It also helps the company to accommodate 24 hour sales service by
a code to enter st the page of checkout. Major challenge for the company is to compare the
price and above that price shown on the website is not always accurate because of the reason
of the delivery charges which are different by every company. To gain competitive advantage
companies must consider the prices which are offered by their competitors. Economic
condition of their target audience and sales of the company must be compared with their
previous sales so that they can push their sales by using effective promotional methods.
(Mandal & Joshi,(2017))
Social Factors-
OCADO must understand the culture of the society in which they are dealing and their
acceptance because their appreciation is needed for the online companies. It tells that the
society beliefs and trust the company. This will help to open up more opportunities for the
company in different markets.
Company needs to respect the standards, beliefs and customers irrespective of their faith,
gender, race and the socio economic background of the customer. They need to keep in mind
the habit of using internet according to different age group of people. Above that access to
internet as it differs in different countries and in rural areas in which poor people who has low
level of income lives.
Technological Factors-

This issue is the most important factor of digital marketing as without technology it is
not possible for the company to use it. Company must know that their website can be displayed
in many devices such as mobiles, desktop, tablets etc. customers can access their portal from
any device available with them. Company needs to analyze the behaviour pattern of the
customers on their website. Company must ensure that in order to gain success they need to
take the help of every channel or platform available so that they can target more and more
customers and make changes accordingly. Company needs to keep an eye on the taste and
preferences of the customers as they rapidly change and they use social media to figure it out
as it is the most effective tool to obtain the results. Company must make their website and
application easier for the customer so that they don't get irritated while placing the order.
Company must consider that whether or not marketing mix is making the elements of new
technology redundant. (Kingsnorth,(2019).)

TASK 3
Analyze and evaluate the benefits and shortcomings social media can bring to start-up
businesses. What are the advantages and disadvantages for a business partner with social
media such as Facebook, YouTube, LinkedIn and Instagram.
Advantages and limitations of Facebook-
Advantages-
Facebook is considered to be one of the most powerful tool to connect with family,
colleagues and friends. Apart from that people can meet new people on Facebook. Many
companies such as OCADO use it to take their business on Facebook and promote their goods
and services on that platform because it has the widest reach among people which creates a
new scope for the business and that is to be able to make money on this platform. If the
company uses this channel in an effective manner then they can find out more prospective
customers. (Patrutiu-Baltes, (2016))
Limitations
Company has faced lot of issues in this aspect as many data which was meant to be kept
as secret was released by the company due to some failure and it has affected the reputation of
the firm very badly. Personal information of anyone can be extracted from Facebook as
everyone has mentioned their interests, qualifications and hobbies in their profile. If the
company finds out any new leads or clients there is a huge amount of possibility that they can
turn out to be simply fake profiles. Most of the people create it for marketing so that they can
gain more friends and grab their attention. There is no limit to this extent as there can be many
people who does this some are stalkers, some of them are marketers, some of them want to
misuse this platform.
Advantages and Limitations of YouTube
Advantages-
According to a survey the company has over 105 million users who uses and surf the
content on YouTube every month. OCADO has the advantage of putting their content on you
tube as the reach of it is very broad because their services are present in more than 40
countries. Apart from that the company is owned by Google which is apparently the largest

search engine in the world which can helps the company to put their content first as a
suggestion. Apart from this anything posted unique on this platform gets viral in a quick amount
of time as it is easy to share and because of the reach of the company.
Limitations-
Company has to bought the attention of the people with the help of their content as
You tube is just a platform but people will only watch the promotion strategy if it is uniquely
made as there are many content available which people feel is worst. Company needs to keep
in mind that when people surf on You tube it is more to a relaxing approach rather than focus
on advertisements and things which are used for promotion. To keep gaining the interest of
people company needs to continuously bring effective methods and content so that people
never feel the need to skip it.
Advantages and Limitations of Instagram-
Advantages
This network also comes under the list of those who has the widest reach among all and
it Is a free tool so company use it to promote their services for free. Apart from that it is
considered to be the fastest growing tool. Currently they have more than 500 million users
active daily and 60 percent of the users are outside from USA which is beneficial for the
company to promote their products and spread their reach. It is even considered to be the best
for companies in the field of visual marketing with that it is also one of the safest tool for
marketing and OCADO don't have to concern about the security of their data as Instagram have
a team which can fight against those who commit cyber crimes. (Key, & Czaplewski, (2017).)
Limitations
Privacy of the image is the major drawback that the company is facing as anyone can
easily screenshot the photo which is posted by the company and can misuse it. This cannot be
changed as the whole system of the company relies on images. More the content and
description of the image is appealing more it will help the company to gain popularity. The
company is also going through the issue of false advertising as there are many who use this

platform to advertise their products and to draw the attention of the clients they misuse the
platform. Apart from that if OCADO does not have many followers on Instagram then they
won't be able to influence many people with this tool which is a drawback for them. (Ryan,
(2016).)
Advantages and Limitations of LinkedIn
Advantages
It facilitates networking for the company with the people who are either professional or
business owners. This states that they are not just active but they will perform the operations
of the business. It opens up to form up new partnership for OCADO with other companies. It
will also help the company to increase their legitimacy and credibility in the market. The reason
behind this is they get recommendations from other users on this platform by simply requesting
it. The most important aspect of this tool is that it helps other companies to look out for people
who will be eligible according to the requirements of the company. (Chaffey, & Ellis-Chadwick,
(2019).)
Limitations
This platform does not help other companies to reach and target young people as they
have people who are old and professionals in their field. If OCADO subscribes for their premium
account then it will be very costly for the company.

TASK 4
Evaluation as well as effectiveness of Social Web for the purpose of brand building.
Social web means a sets of the relations which are used for the purpose of linking people from
all around the globe. On the basis of social web the company can increase shopping online by
sharing the link from which the company can buy products fast and in more effective way.
OCADO
OCADO can use social media web for the purpose of building brand and for the purpose of
doing advertisements. Social media will help in making the public aware of the brand by
creating page for the product on Facebook. Email marketing is also a effective tool in which
professional persons can be contacted and they same will convert into sales. OCADO can use
social media for the purpose of running campaign in which the company can do advertisement
of the product to the audience of the targeted group. This can be done by joining relevant
groups of which are necessary to join for the purpose of increasing revenue. The same will help
the company in launching new products and letting known the public what are features of the
product which will help the company in promotion of the product.
Sainsbury
Sainsbury will use social web for the purpose of launching new products and also for the
purpose of brand awareness. As per the analysis it is found that the revenue of the company
has increased by doing affecting advertisement on the social media platform. Network
marketing can be used by Sainsbury which will help the company to promotes its product and
paying to the one who is bringing changes in the company. Social media is widely used and for
Sainsbury Instagram will be more effective because a lot of young audience in there on the
Instagram. The Instagram can be used by sharing the story in which the reach of the new
product to the selected audience is possible. SEO can be done for the purpose of ranking the ad
over the media which will help the audience for the purpose of increasing revenue. Blogs can
be created in which information of the product can be shared and also off page and on page
SEO will help the company in making reach more the product details over the internet. Using
You tube the Sainsbury can be convert the You tube audience. Video is having higher affect
over the public in which the public can see the new launched of the product and the benefits of

the product which will make their life easy and more happier. There is one more features such
as live video in which the live audience can be targeted for the conversion purpose. (Baltes,
(2015).)
CONCLUSION-
From the above studies it has been concluded that OCADO has made their name in the market.
They can use many tools to promote their products digitally. Above that company also has the
scope to increase their revenues if they use these methods in an effective manner. Company
needs to follow ethical code of conduct so that they can maintain the image and reputation in
the market.

REFERENCES
Books and Journal
Baltes, L. P. (2015). Content marketing-the fundamental tool of digital marketing. Bulletin of the
Transilvania University of Brasov. Economic Sciences. Series V, 8(2), 111.
Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson UK.
Key, T. M., & Czaplewski, A. J. (2017). Upstream social marketing strategy: An integrated
marketing communications approach. Business Horizons, 60(3), 325-333.
Kingsnorth, S. (2019). Digital marketing strategy: an integrated approach to online marketing.
Kogan Page Publishers.
Mandal, P., & Joshi, N. (2017). Understanding Digital Marketing Strategy. International Journal
of Scientific Research and Management, 5(6).
Narasimhan, S. (2016). Digital marketing strategy for naturals: India s leading hair and beauty
salon (Doctoral dissertation, Indian Institute of Management Bangalore).
Patrutiu-Baltes, L. (2016). Inbound Marketing-the most important digital marketing strategy.
Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 9(2), 61.
Priluck, R., & Topol, M. (2018). Exploring Social Media Marketing Knowledge Among Students
and Professionals. International Journal of Marketing & Business Communication, 7(2).
Ryan, D. (2016). Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.